Analyzing a Payroll Service Provider

Gone are the days of having traditional, inconvenient in-house payroll systems. There are more reasons than one to do so with major reasons being they’re repetitive, complicated and prone to human error. If you switch to a payroll solution, it can reduce costs, minimize mistakes and lets you plan your business better toward growth. That being said it is not a small commitment to outsource payroll for most businesses. There must not be any room for wrong choices as it is an intimate task and even a small mistake can waste a significant investment of time and money. However, the payroll service providers have different technology, support and expertise that make some a better fit than others. Of course , one shall have their own share of concerns and questions. Following are few points to be considered prior to choosing the right payroll partner:

1. The support they can provide

One has to zero in on the the services you want from them specifically. While there are some low cost outsourced payroll services that only help to calculate the remuneration, superannuation and tax, the others can give more of a profound service which is all-round. These can be calculating wages, taxes, applying pay rule conditions, then distribute all payments to the employees, relevant agencies, authorities and others. In addition, these can be also sought for services like handling the new employee reporting, deduct benefits, including health and insurance benefits. They can also handle various earnings and deductions, like bonuses, reimbursements, commission, etc. It is clear that you have to specify payroll requirements and search for a vendor that delivers everything you need right at the start. The services are manifold; all you need to do is some sorting of what you exactly need.

2. The add-ons that they offer

A reputed payroll service provider can incorporate broad range of in-house employment management services including recruitment, employment law, workplace health and safety support, recruitment, time and attendance and HR. As a matter of fact, there are many payroll and HR management providers which look after full HR, safety, performance and payroll solution. You may ask for these add-on services so you can save big and improve efficiency.

3. Which payroll system to use?

There is no point in having a payroll management service which uses archaic software only to make things difficult to customize, costly to implement and limit its ability to integrate with other platforms. The least you need to do is make sure you ask what technology they generally use when it was developed and what it can offer. Do your homework in advance. Also, take time to evaluate their technology. Can they demonstrate functionality? Is it a stand-alone system or scalable? Does it have functionality that enables you to access the information if required? These are the questions which you must ask before considering their services.

4. Communication with the payroll professional

Much like a company’s head meets its professionals, it’s important to meet the professionals who would provide critical services for your company. Therefore, one must not avoid this question, a rather overlooked one. In order to do so, you need to get in touch with payroll officer and see how knowledgeable they are. This is pretty important as it gives you fair bit of idea as to whether the payroll officer knows and understands your industry or sector so he can handle the challenges that may arise. In general, the reputed providers do not provide direct access to a payroll specialist. What they do instead is that they manage your account by a system specialist who helps you with technical & operational issues.

5. Questions on secure service

Security of data is second to none. So it is important to know how a potential payroll provider protects its data center. The data center is the nucleus of all your sensitive financial information which has to be kept safe from the hands of hackers, break-ins, and other disasters. As such, one must verify that vendors keep data safe using the highest encryption standards available. Another key feature that must be in place is multiple layers of security, including biometric scanning for controlled access, as well as key card, PIN number restrictions, etc. At the same time, you are better off ensuring that the payroll service provider has security camera provision that can monitor all of the provider’s locations around-the-clock, along with onsite staff to protect against unauthorized entry.

Payroll service providers are of great help and can oversee all the vital activities which can ensure the smooth functioning of the organization. Hence, the choice of the same has to be foolproof with much forethought on what you need for your business.

This content is meant for information only and should not be considered as an advice or legal  opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Leave a Reply

Your email address will not be published. Required fields are marked *